(UnitedVoice.com) – At the beginning of April, former President Donald Trump posted a $175 million bond in the New York civil fraud trial. The state Supreme Court’s system promptly rejected it. Attorney General Letitia James then asked a judge to reject it outright. However, Trump has now reached an agreement with the AG’s office.
On April 22, representatives for James’ office met with Trump’s legal team to modify the terms of the $175 million bond. Knight Specialty Insurance Company provided the backing for the bond, but the AG had questions about what assets the former president put up to secure it. Trump deposited $175 million into a money-market account as collateral.
According to reports, the new deal requires the $175 million to remain as cash. The former president would not be allowed to transfer it to mutual funds or anything of that nature. Knight Specialty Insurance Company will also have total control over the money-market account, not Trump.
The news that the bond will stand was a win for Trump. He was required to post it after a judge slapped him with a $454 million judgment for inflating his assets in order to get loans, then deflating them when it came time to pay taxes. He was originally required to post a bond for the entire judgment, but his legal team said he was unable to find a company to secure it. An appeals court reduced the bond to $175 million, but he only had 10 days to finalize it. That’s when Knight Specialty Insurance Company stepped in to help.
The insurance company is owned by billionaire Don Hankey, who made his fortune selling subprime mortgages. He’s a longtime Trump donor and has helped the former president with financial problems in the past. By securing the bond for Trump, Hankey has given him room to file his appeals without the fear of James trying to seize his assets to pay the judgment.
Trump has maintained his innocence in the case and is moving forward with the appeals process.
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